BROADBAND BREAKTHROUGH?

Lisa Creffield, Sky News Business Reporter

18 October 2010

Is the tide turning on NBN sentiment?

Despite a concerted disinformation campaign by the Opposition, it seems that mainlanders are scrabbling to get connected to the fast, fibre network.

According to NBN Co, 90 per cent of households in some regional cities have already signed up. That compares with around 51 per cent of Tasmanians.

Telstra says more people are working from outside the office, and even more want to, when sufficient broadband is available.

Even notorious naysayer The Australian has finally published a positive opinion piece, by writer Mark Day. As reader David Sanderson from Ballina comments:

"This article could have been written by Malcolm Turnbull if he had the ability to say what he truly thinks and was not bound by his new taskmaster and internal Liberal party politics."

Sadly, this is probably true.

The reality is that a major nation-building project, that should catapult Australia ahead of most other developed nations in broadband, has become a political pawn in a bizarre game of destructo-politics. It has been astounding, even absurd, that the Opposition would so determinedly attempt to tear down the NBN, even after effectively losing the election over their own poor broadband policy.

But just as other issues, dear to younger (and increasingly some progressive older) demographics: gay rights, abortion rights, euthanasia, secularism, adult rights, can no longer be brushed under the carpet by elderly gentlemen in Canberra; nor can these ageing, tech-illiterate career politicians expect to trample upon the superior knowledge and vision of the digital generations.

Generations plural. For it won't only be Generation Z, the "digital natives", that benefit from the NBN. Every generation, every age and type of person in Australia will see their life and nation enhanced by this world-leading network.

Share your thoughts on this blog:

Comments are moderated and will not appear until they have been approved.

Fingerbun, Sydney (1 November 2010 3:26PM) wrote:
From May 2009: Turnbull believed the $43 billion had been plucked out of the air and said that with realistic assumptions it couldn't possibly commercially viable. "Now it's often said that a vision without resources is a hallucination. Well let me say a $43 billion vision without any business plan, without any way of knowing how or whether it can be paid for, is more than that, worse than that, it is a very dangerous delusion indeed," he said. Source : http://www.zdnet.com.au/turnbull-slams-dangerous-nbn-delusion-339296322.htm?omnRef=http%3A%2F%2Fau.search.yahoo.com%2Fsearch%3B_ylt%3DA0oGkzexOM5M90cBykoL5gt.%3Fp%3Dturnbull%2BNBN%2B2009%26fr2%3Dsb-bot%26fr%3Dyfp-t-501 I also remember him saying that perhaps we should do it without requiring it be commercially viable, but if so we should know that is what we are doing and how much it will cost us. No time to dig out reference for that now.

Fingerbun, Sydney (1 November 2010 3:19PM) wrote:
This almost reads like an NBN Co press release. Sure we should invest in broadband, and sure the opposition's policy at the last election was poor, but that doesn't make NBN right in its current form. Nor is Turnbull's opposition new. Google "Turnbull NBN 2009". What he is saying now is totally consistent with what he said as opposition leader. The digital natives are connecting to the net via wireless mobile wherever they are. How does that fit with one big bet on fiber to the home from politicians who see Web 2.0 as a glorified mailing list for press releases?

Clark B, Sydney (1 November 2010 1:59PM) wrote:
The real proof will be in the number of paid services which are taken up. I personally hope that the service activations will be a very high percent of the homes connected, otherwise any taxpayer funds spent enticing or connecting homes to the NBN by definition will be a waste. Has the government confirmed that every premises in Australia will be able to connect to the NBN for free like these first release sites? If not then take up will be lower, if yes then the rollout costs will be higher. These sorts of questions would be interesting to have answers for. Your other comments on the political parties, generational shifts and otherwise seem pure speculation. Unless of course, you've actually verified that the ALP has a lower average age, hence their more progressive broadband policy? Finally, for the record, I believe in high-speed broadband. I have devoted my entire professional career to enabling internet access across Australia (and other parts of the world). I'm not calling the reported take-up rate into question, but merely suggesting that there is a deeper level of analysis that you could have performed.

Clark B, Sydney (1 November 2010 1:57PM) wrote:
3. There is no mention of how much money was spend on obtaining this take up rate. In the industry we refer to this as the customer acquisition cost. Did NBN Co need to spend substantial amounts of money in advertising, information packs and local meetings to obtain this rate? Was door knocking employed etc? Will the same level of funds be used to attract all future customers? With a small sample, a free product and enough marketing, anyone can get a high take-up rate.

Clark B, Sydney (1 November 2010 1:52PM) wrote:
2. The 90% figure is released as a percentage to sound larger than it might be. In fact, the lack of real numbers of the total number of take-ups makes it impossible quantify the exact number of properties connected. You can view maps of the first release sites here: http://www.nbnco.com.au/wps/wcm/connect/first-release/site-base/first-release-areas The total estimate for first release sites is 11500 premises, given the reported average take up of 77%, has NBN Co confirmed that ~9000 connection applications have been accepted? I get nervous when I read announcements with only percentages.

Clark B, Sydney (1 November 2010 1:52PM) wrote:
1. NBN Co was forced to extend the deadline for first release homes to sign up for NBN connections. http://www.nbnco.com.au/wps/wcm/connect/main/site-base/main-areas/publications-and-announcements/latest-announcements/residents-in-first-release-sites-given-extra-time-to-sign-up-for-high-speed-broadband If demand was so strong, why was an extension required?

Clark B, Sydney (1 November 2010 1:52PM) wrote:
Hi Lisa, It's interesting how you can take one statistic (ie. the 90% take-up rate) and turn it into a justification for such a wide range of views. What seems to be missed in a lot of reporting, is that the NBN Co take up rate does not mean that 90% of households have signed up to paid services, only that 90% of households within the NBN Co release sites have accepted a free fibre connection. Australians can spot a good deal, and getting a fibre connection to the home for free - regardless of whether you plan to use it - is not something to be missed. Particularly if you are told that you might have to pay for the connection if you don't accept it now. But still, 90% represents an overwhelming proportion of households, clearly indicating a strong demand for NBN right? Actually I have four problems with this assumption.